With Respect to Recognizing and Measuring the Fair Value of a Business

question 81

Multiple Choice

With respect to recognizing and measuring the fair value of a business combination in accordance with the acquisition method of accounting, which of the following should the acquirer consider when determining fair value?

• A) Only assets received by the acquirer.
• B) Only consideration transferred by the acquirer.
• C) The consideration transferred by the acquirer plus the fair value of assets received less liabilities assumed.
• D) The par value of stock transferred by the acquirer, and the book value of identifiable assets transferred by the entity acquired.
• E) The book value of identifiable assets transferred to the acquirer as part of the business combination less any liabilities assumed.

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